Page:United States Statutes at Large Volume 112 Part 1.djvu/836

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112 STAT. 810 PUBLIC LAW 105-206—JULY 22, 1998 (B) Subsection (f) of section 2001 of the 1986 Code is amended to read as follows: " (f) VALUATION OF GIFTS.— "(1) IN GENERAL—If the time has expired under section 6501 within which a tax may be assessed under chapter 12 (or under corresponding provisions of prior laws) on— "(A) the transfer of property by gift made during a preceding calendar period (as defined in section 2502(b)); or "(B) an increase in taxable gifts required under section 2701(d), the value thereof shall, for purposes of computing the tax under this chapter, be the value as finally determined for purposes of chapter 12. "(2) FINAL DETERMINATION.— For purposes of paragraph (1), a value shall be treated as finally determined for purposes of chapter 12 if— "(A) the value is shown on a return under such chapter and such value is not contested by the Secretary before the expiration of the time referred to in paragraph (1) with respect to such return; "(B) in a case not described in subparagraph (A), the value is specified by the Secretary and such value is not timely contested by the taxpayer; or "(C) the value is determined by a court or pursuant to a settlement agreement with the Secretary,". (B) Subsection (c) of section 2504 of the 1986 Code is amended to read as follows: "(c) VALUATION OF GIFTS.— If the time has expired under section 6501 within which a tax may be assessed under this chapter 12 (or under corresponding provisions of prior laws) on— "(1) the transfer of property by gift made during a preceding calendar period (as defined in section 2502(b)); or "(2) an increase in taxable gifts required under section 2701(d), the value thereof shall, for purposes of computing the tax under this chapter, be the value as finally determined (within the meaning of section 2001(f)(2)) for purposes of this chapter.". (f) AMENDMENTS RELATED TO SECTION 507 OF 1997 ACT. — (1) Paragraph (3) of section 1(g) of the 1986 Code is amended by striking subparagraph (C) and by redesignating subparagraph (D) as subparagraph (C). (2) Section 641 of the 1986 Code is amended by striking subsection (c) and by redesignating subsection (d) as subsection (0. (3) Paragraph (4) of section 1361(e) of the 1986 Code is amended by striking "section 641(d)" and inserting "section 641(c)". (4) Subparagraph (A) of section 6103(e)(1) of the 1986 Code is amended by striking clause (ii) and by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (g) AMENDMENTS RELATED TO SECTION 508 OF 1997 ACT. — (1) Subsection (c) of section 2031 of the 1986 Code is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph: